$1.16 Billion Flows into Quantum in Q2 2025 as Big Tech and Investors Up Their Game

Business Insider

16-07-2025

Investor sentiment around quantum computing is shifting, as the industry as a whole is gaining momentum. And it is not only coming from industry boosters. According to The Quantum Insider's Q2 2025 report, private capital investments, strategic acquisitions, and technical progress all increased in the second quarter. From early-stage funding rounds to corporate roadmaps and policy updates, quantum is showing signs of moving closer to commercial scale.
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Before we begin with this week's recap, let's examine the chart below, which clearly illustrates the increasing demand for quantum systems on the global stage. This suggests wider adoption across more geographies and sectors, as buyers seek to diversify risk and test systems at smaller scales.
$1.16 Billion Flows into Quantum Computing in Q2
The headline figure is $1.16 billion in private funding during Q2, representing a 50% increase from the same period last year. The quarter saw fewer deals but larger ones, a pattern that typically reflects growing confidence among institutional investors. For context, Spain-based Multiverse Computing has raised $215 million to advance its AI compression tool for large language models. SandboxAQ raised $450 million from new and returning backers, including Ray Dalio, Google (GOOG), and Nvidia Corporation (NVDA).
Another private company, Infleqtion, secured $100 million in Series C financing to scale its atom-based quantum systems. Several public companies also used stronger demand to raise fresh capital. IonQ Inc. (IONQ) completed a $372 million at-the-market equity offering. Quantum Computing Inc. (QUBT) and D-Wave Quantum Inc. (QBTS) each raised $400 million.
M&A Is on the Rise
Another strong indicator of the positive shift is the increase in M&A activity, which was also evident in Q2. IonQ Inc. announced it will acquire UK-based Oxford Ionics for $1.075 billion in stock and cash. The deal brings together IonQ's commercial footprint with Oxford's semiconductor-based ion-trap qubit technology. French startup Pasqal acquired Canadian photonics firm AEPONYX to improve its roadmap toward fault-tolerant quantum computing.
On the technical front, IBM (IBM) has unveiled plans for its Quantum Starling system, which is expected to be available by 2029 and is projected to perform 20,000 times more operations than today's quantum machines. Microsoft (MSFT) introduced a new class of four-dimensional error correction codes that could reduce the number of physical qubits required for scalable systems. Another major quantum player, although private for now, is Quantinuum, which has reported a milestone in demonstrating a scalable and fault-tolerant universal gate set. The company says this achievement is a step toward practical use cases.
Nvidia CEO Jensen Huang reflected a broader change in tone during a June keynote, saying quantum computing is nearing an inflection point. Just earlier this year, he suggested that practical machines were still likely to be decades away. His remarks, along with Nvidia's backing of SandboxAQ, add weight to the change in tone.
Administrative Backing
As the subheading suggests, governments are also paying attention. U.S. lawmakers held a hearing in June on the cybersecurity risks posed by quantum computing and called for updates to cryptographic systems. The UK government has committed £500 million, approximately $672 million, toward national quantum programs.
The sector still faces challenges, but in Q2, several signs pointed in the same direction. Capital is flowing, product roadmaps are tightening, and both public and private players are aligning behind quantum's potential. For investors tracking the sector, the second quarter of 2025 marked a notable step forward.
Using Tipranks' Comparison tool, we've assembled and compared all the publicly traded quantum computing companies appearing in the article. This helps you gain a better and broader perspective on each ticker and the industry as a whole.